Drainage board bills could rise to meet funding shortfall as Environment Agency to slash payments

Rate payers could be in for a shock next year as bills could be rising as internal drainage boards attempt to make up a funding shortfall.

Money paid to internal drainage boards - responsible for keeping areas like South Holland, East Lindsey and Boston flood free - for pumping away water which has flowed down from higher parts of the country could be slashed next year by the cash-strapped Environment Agency (EA).

The EA says it does not have the money to meet the ‘increased claim’ put in by IDBs for dealing with ‘higher land water contributions’ and has warned that it will only pay 54%.

Agency officials say the total claim for IDBs in 2024/25 for high land water is £5,132,000 but their budget is only £3,794,000.

IDBs costs have risen dramatically in recent years as wetter winters has resulted in higher energy bills as they pump away water in order to keep homes and businesses safe.

An EA spokesperson said: “The Internal Drainage Boards has made a larger value claim to the Environment Agency for higher land water contributions (also known as highland/higher level water contributions) compared to last year and which exceeds the budget available.

“We recognise the impacts of harsh winter storms and sustained flooding on IDBs and landowners and accordingly.

“Additional funding to meet the increased claim would need to be drawn from other asset maintenance funding, which is not an option, however we will continue to work with IDBs to look at options for managing these claims in future.”

A report to Lincolnshire County Council has showed that the Welland and Deepings Internal Drainage Board will also be affected by this payment.

But the Association of International Drainage Boards is hoping that a ‘workable solution’ could be found.

Chief executive Innes Thomson said: “The position has not been formally confirmed in writing and the EA are trying to resolve this difficult situation. There is a mechanism where, if formally confirmed, the IDBs have the ability contest the decision and they would do that if a solution cannot be found.

“Impacts of this unplanned non-payment are quite serious on the Witham and Humber group of IDBs and others affected with the risk of knock-on effects to all drainage rate-payers next year when the IDB set their budgets.

“Everyone accepts that funding is very difficult at present and IDBs make every effort to operate as efficiently as possible and rely on tight budget setting at the start of each year to do that. Part of the process is coming to agreement with the EA on the planned payment for higher land water contribution and then sticking to that plan. Short-notice changes can affect cash-flows for IDBs, especially at this critical time of year entering the wetter winter period.

“I remain hopeful that a workable resolution will be found.”

More focus is being placed on the funding of internal drainage boards.

South Holland District Council and a number of other authorities are calling on the government to provide a sustainable solution for the funding of IDBS and has recently presented a number of options to MPs.

Under the current situation, ratepayers pick up the burden of spiralling costs. Earlier today, SHDC increased its share of the council tax earlier this year and leader Coun Nick Worth warned that that the £268,000 extra income would be ‘wiped out’ by the money needed by the internal drainage boards.

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